Silver Coins

What silver coins are best to invest in?

When starting a collection or adding to your precious metals holdings we will always recommend diversifying with private silver coins. Silver remains the most misunderstood of all four major precious metals and appears to offer an extraordinary amount of value at current levels. Today, more than ever, we view silver as a solid store of value and a prudent investment to any properly balanced and diversified precious metals portfolio. We also believe the key is owning private, physical silver coins or bars that you control and hold in your own possession.

One of the best silver coins to own, The Silver American Eagle, is the most popular silver bullion coin in the world today and it has been struck every year since 1986. You can also add world silver coins and silver bars for more diversity. Further suggestions are Silver Canadian Maple Leafs, Australian Koala & Kookaburra Silver Coins, Buffalo Silver Rounds, China Panda Silver Coins, Silver Austrian Philharmonics, & Silver Bullion Bars with various designs.

If you have any questions regarding what silver bullion to own please call or email a Gold and Silver Bullion Advisor at Austin Rare Coins & Bullion… we are always happy to help with your goals and objectives.

The Case for Silver

In our opinion, silver is the most misunderstood, mispriced, and undervalued commodity on the face of the planet. Silver has been considered sound money for thousands of years and is the only commodity you can buy today for less than it was in 1980. It’s an irreplaceable component of the modern age with new uses being discovered every year.

Newcomers to the silver market are surprised to learn that while prices have been falling the past few years, investment demand for physical silver continues to set records around the globe. In 2015 the U.S. Mint struck and sold over 47 million Silver American Eagles, an all-time record. In 2016 the U.S. Mint reported over 2.7 million Silver Eagles sold in the first day of sales alone! This is a staggering number considering that during the 1990s there were entire years where only four million coins were issued.

Questions About Silver Pricing

We’re not the only country reporting record production, either. Most mints around the world are experiencing the same insatiable investor demand for physical coins and bars. Clearly, off the charts investor demand shouldn’t cause lower prices, particularly since silver has fallen in value 70% since 2011 highs and 12% last year alone. So what’s really going on here?

If there is one thing investors have learned over the past few decades, it’s that financial tides can move quickly. Just because something may trade for a certain price on a given day, it doesn’t necessarily mean that’s what it’s really worth. While this is most often the case with equities, we firmly believe this to be the case with silver prices today. You see, today’s silver prices come directly from futures contracts. In most cases, when the contract ends, the buyer doesn’t actually take delivery of the silver but either liquidates the position or takes out another speculative contract. When you take a close look at the futures market as it pertains to precious metals, then the issue becomes very clear.

In 2016 Zerohedge.com reported that the COMEX had promised out 294 times more ounces of gold on paper than they were able to deliver. This means that for every ounce of gold promised there are 293 investors who will be left empty-handed if they try to take delivery. Our research revealed a similar situation in silver futures, which creates comparable problems. First there is a noticable disconnect between physical market supply and paper pricing. Secondly, when investors do rush to take delivery, there will not be enough silver to go around.

Silver Today: Calm Before The Storm?

Given the existing shortfall of supply and growing demand, we feel silver prices can only move upwards long-term. Given imbalances in future pricing there is the distinct likelihood of an absolute price explosion in silver. That’s why we urge you to accumulate it now, before the breakout, and before premiums begin to rise on bullion coins and bars.

Currently, global silver ETF holdings are roughly $5 Billion total. In the ocean of liquidity, debt, and fiat currency, this is a drop in the bucket. Consider this: One aggressive hedge fund or group of investors could immediately corner the market!

The key is to accumulate silver while prices are in a lull and before a breakout begins like we saw in 2011. Back then, after moving sideways between $16 and $20 per ounce, silver rose in value from $20 to $48 in only seven short months!

Dealer inventories around the globe were cleaned out as the rush from paper assets to precious metals took hold. Silver skyrocketing up 240% in just over half a year’s time caused an absolute buying frenzy across the industry and there were delays of up to three months on many standard products we offer like Silver Eagles and Maple Leafs. While nobody can predict exactly when the tide will turn for precious metals, the best strategy in our opinion is to collect all you can at current levels and before investor sentiment changes.

Given the out of control global debt situation today, the fundamental reasons that started the precious metals rally in 2001 are very much in play. If you have questions or would like to speak with one of our Austin Advisors, just give us a call at 1-800-928-6468.

Buying Opportunity: Low Mintage Silver Bullion Issues

On top of the normal coinage produced each year, sometimes world mints will produce special issues that can rise in value due to their collector appeal. For example, in 2014 the Perth Mint issued a one ounce Silver Saltwater Crocodile coin with a limited mintage of just one million coins and within three weeks of their release they were completely sold out. Interestingly enough they didn’t cost much more than a Silver Eagle, but they are dozens of times more scarce and bring higher premiums.

We have seen numerous issues over the years come and go, and their track records have been impressive. Not only do they move dollar for dollar with the price of silver, but due to their scarcity, beauty and high collector demand they oftentimes are valued well above their metal content. The key is identifying these issues before they go up in value, and stashing them away when they’re first released while prices are still cheap.

Another issue offering added collector value is the five ounce Silver America the Beautiful program by the U.S. Mint. These large silver coins are produced in extremely limited quantities (some of them only have 10,000 coins issued) and have appreciated in value considerably over their intrinsic value alone. Each year, five new designs are released that always sell out quickly due to their popularity, beauty, scarcity, and collector demand.